GM is making some sweeping changes to its business model, and it looks like even white collar executives are losing their footing. Ostensibly the changes are geared toward freeing up $15 billion in liquid assets by 2009. Through it all the Chevy Volt continues to receive solid funding, but the Chevy Beat isn’t so lucky. That small car won’t be making a debut in North America at least until its next generation.

Right now GM has nearly a single-minded focus on producing cars with large volumes, and given the right price point, the Chevy Volt certainly fits. Consumers are desperate to save money on transportation costs and driving the first 40 miles gas free sounds like a dream come true.

In the meantime though, GM may be disappointing some people by withholding the Chevy Beat from North America. Its sporty look and estimated 40 mpg on the highway could have been a stopgap car for many consumers on their way to a Chevy Volt.

But, the Chevy Beat “doesn’t meet federal safety and crash standards. It would take too much money and about two years to bring the Beat up to snuff for sales in the U.S.” according to AutoBlog. With those challenges putting the Chevy Beat well after the Volt’s release date, it starts to make sense why Bob Lutz decided to put that model on hold.

To fuel its search for fuel efficient, high sales volume vehicles GM is cutting the salaries of top executives by eliminating annual cash bonuses, eliminating healthcare for retirees 65 or older, and no discretionary bonuses for its executive group. “For the company’s top executive officers, it represents a reduction in their cash compensation opportunity of 75 to 84 percent,” according to GM.

Sounds like a lot of weight at the top of the company, which frequently happens with cash cows. Hopefully this allows GM to move forward with critical projects like the Chevy Volt until it returns to success.

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Entry was posted on Wednesday, July 16th, 2008 at 12:03 am under Auto, Green Technology.

Read more entries by Matt Jansen.
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